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The financial situation left by Covid: the worst part is taken by the self-employed and young people

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Pessimism is prevalent among the self-employed and the youngest, the groups that the economic crisis caused by the pandemic is affecting the most, judging by the perception they have about their current situation. Falls in consumption, rises in savings, unemployment or Temporary Employment Regulation Records (ERTE) are some of the reflections of the trail left by Covid-19 in the finances of the Spanish population.

About half (46.2%) state that see the worst situation (29.1%) or much worse (17.1%), although for a very similar percentage (45.4%) the progress of their domestic economy has not suffered a significant alteration, according to the data collected in a study prepared by the association of financial users (Asufin). It reflects that students (64%), pensioners (71.2%) and employees (60.1%) are the segments that declare not having noticed a substantial change in your employment situation.

On the contrary, 71.2% of workers in ERTE situation they perceive the economic moment we are in as worse or much worse compared to six months ago. By age group, those who have a more negative perspective are young people between 26 and 35 years of age who generally consider your situation has worsened (55.3%), followed by the segment between 36 and 45 years old (48.5%). For their part, those over 65 years of age consider that their situation is the same in 66.8% and only 19.6% that it has worsened.

Taking into account income, 49.1% declare that they have been reduced in these months of the pandemic. Relevant is the fact that 8.7% of the population states that this decrease exceeds 50%. The most important differences are found mainly by professional situation. In addition to the 100% of workers in ERTE situations who indicate this decrease, 70.8% of the self-employed also do so in some percentage. By age groups, this decrease is also greater in the young segments (from 26 to 35 years old with 56.8% of respondents who have seen their income reduced by a certain percentage) "which is especially worrying if we have in mind that your salary base is already lower to that of older segments ", they highlight.

EXPENDITURE vs. SAVING

Regarding expenses, the decrease (38.3%) is the most important trend. If we take into account that 49% declared a reduction in income, this percentage that admits that they have had to increase their expenses (and that scales to about half of the previous ones) places us before a financial imbalance in family economies, which in the medium term could aggravate the situation of many households if there is no income recovery.

These imbalances between income and expenses can be temporarily covered with savings. This is stated by 23.4% of those surveyed, who affirm that they are using it to live. 18.1% admit that they are saving more. However, the most prominent percentage is 40.3% who state that both now and six months ago has no ability to save.

And this situation has led many to request some kind of help: 48.9%. They have used their credit cards (12.3%), through a loan (5.3%), with the help of public administrations (2.9%) or by resorting (in a specific 23.3%) to the environment closer to family and friends, having less impact financial products. The self-employed are the ones who have requested the most financial aid, 72.3%.

Of those who have applied for a loan, 57.2% of the self-employed declare that they granted without problem and 24% had to modify conditions, although the highest percentages of non-concession are in students (29.6%) and unemployed without benefits (27%). Of course, most continue to bet on regulated financial entities (89.9%), either their bank (70.1%) or another financial institution (19.8%), although it is relevant that 7.8% opt for other types of companies such as microcredits, and 2, 3% by private lenders.

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